By John K. Turkson
As a part of the wave of liberalization sweeping such a lot elements of the area, energy sectors all over the world are coming lower than extreme scrutiny, with a few being restructured. This e-book offers six case reviews (Côte d'Ivoire, Ghana, Kenya, Zimbabwe, Uganda and Mauritius) to envision the method and implementation reports of strength area reform in Subsaharan Africa. It additionally provides a cross-country comparability that discusses the reform paths and methods selected by way of the various nations.
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Additional info for Power Sector Reform in SubSaharan Africa
Sample text
In the contracts the government pledges to provide greater autonomy to the utilities or meet other obligations as agreed between the parties to the contract. For a performance contract to be successful, the contract should include three main elements: information, reward and penalty, and commitment. Information issues arise because the contracting parties (government on the one hand and managers of SOEs on the other) have different sets of information, and each side can use the information it holds to improve its bargaining position.
Turkson 23 sector investors naturally would require (Spiller and Mortorell, 1996). Development of similar institutions in SSA would thus appear to be important to the prospects for successful power sector reform. Concluding remarks This chapter has discussed the conceptual issues associated with reform of the power sector from its current vertically integrated regulated structures to different restructuring models and regulatory systems. The reform strategy involving changes in ownership/management structures, and industry structure and regulatory environments is a complex operation, and a sequence of phases needs to be planned and implemented.
For SubSaharan Africa, the issue is not to decide which of these regulatory regimes is better, but to understand what it takes to adopt and implement any regime in terms of institutional and human capacity, legal systems and the cost involved. Note 1 See Hunt and Shuttleworth for more detailed discussion on this subject. References Acton, J. and Vogelsang, I. (1989). ‘Symposium on price cap regulation: Introduction’, Rand Journal of Economics, 20, 369–72. Alchian, A. A. (1965). ‘Some economics of property rights’, Il Politico, 30, 816–29.